Mortgage After Redundancy: How to Secure a Home Loan After Losing Your Job

Being made redundant can be unsettling — especially if you were planning to buy a home, move house, or remortgage. Many people assume redundancy automatically puts mortgage plans on hold for months or even years.

The reality is more reassuring. Getting a mortgage after redundancy is often still possible, depending on your current employment position, income stability, and how the application is handled.

At Mortgage Bridge, we regularly help clients navigate mortgages after redundancy — including those who’ve just started new roles, had short employment gaps, or are worried about lender perception. This guide explains how lenders really assess redundancy and what you can do to move forward.

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Can You Get a Mortgage After Redundancy?

Short answer: yes — in many situations.

Redundancy itself is not a permanent barrier to mortgage approval. Lenders are primarily concerned with your current and future ability to repay, not the fact that you were made redundant.

Approval depends on:

• Whether you are currently employed
• The stability of your new income
• How recent the redundancy was
• Overall affordability

The context around the redundancy matters far more than the redundancy event itself.

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How Do Mortgage Lenders View Redundancy?

Lenders treat redundancy differently from dismissal or resignation.

Redundancy is usually seen as:

• A business decision, not personal fault
• Common during economic change
• Less concerning if followed by re-employment

What lenders focus on is how quickly you recovered and how stable your situation now looks.

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Can You Get a Mortgage If You’re Back in Work After Redundancy?

Yes — this is one of the most common scenarios.

Many lenders will consider applications if:

• You have started a new permanent role
• Your income is stable
• You are not in a probation period — or the lender accepts probation

Some lenders are happy to lend:

• From your first payslip
• During probation
• If the new role is in the same industry

Choosing the right lender is critical here.

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What If You’re Still in a Probation Period?

Being in probation does not automatically stop mortgage approval.

Some lenders:

• Accept applicants in probation
• Require a signed employment contract
• Want confirmation the role is permanent

Others are stricter. This is why applying to the wrong lender after redundancy often leads to unnecessary rejection.

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Can You Get a Mortgage While Still Redundant?

This is more challenging, but not always impossible.

Most lenders require:

• Active employment
• Or a confirmed future start date

In limited cases, lenders may consider:

• Strong savings
• A signed contract with a start date
• Short redundancy gaps

Specialist advice is essential in these situations.

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How Does Redundancy Affect Mortgage Affordability?

Redundancy affects affordability indirectly.

Lenders assess:

• Current income
• Stability of employment
• Ongoing outgoings
• Savings and financial buffer

If your new income is lower than before, borrowing limits may reduce — but approval can still be possible.

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Does Redundancy Affect Your Credit Score?

Redundancy itself does not appear on your credit file.

However, it can lead to:

• Missed payments
• Increased credit use
• Overdraft reliance

Keeping credit commitments under control during redundancy is extremely important for future mortgage approval.

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Can Redundancy Pay Be Used for a Mortgage?

Redundancy pay is usually treated as:

• A short-term financial buffer
• Not long-term income

It can help:

• Support savings
• Strengthen deposit
• Reassure lenders about resilience

But it’s not usually counted as income for affordability.

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What Deposit Is Needed for a Mortgage After Redundancy?

Deposit requirements vary depending on risk.

Typical expectations may include:

• 5–10% if employment is stable again
• 10–15% or more if circumstances are more complex

A stronger deposit can help offset concerns about recent employment disruption.

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Common Myths About Redundancy and Mortgages

“Redundancy means automatic rejection.”
False — context matters.

“You must wait years after redundancy.”
Not true — many apply successfully much sooner.

“Changing jobs always ruins mortgage chances.”
Incorrect — many lenders are flexible.

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How to Improve Your Chances After Redundancy

If you’ve been made redundant and want a mortgage:

• Secure stable employment if possible
• Keep bank statements clean and consistent
• Avoid new credit commitments
• Save a financial buffer
• Get advice before applying

Preparation often matters more than timing alone.

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How Mortgage Bridge Helps After Redundancy

This is a situation where expert guidance makes a real difference.

At Mortgage Bridge, we:

• Assess employment changes in lender context
• Identify lenders that accept probation or recent job changes
• Support clients with employment gaps
• Structure applications to avoid unnecessary declines
• Help clients move forward confidently

We’re here to help you understand what’s possible after redundancy.

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Key Takeaways

• You can often get a mortgage after redundancy
• Lenders focus on current employment and stability
• Probation periods are not always a barrier
• Redundancy itself does not affect your credit score
• Lender choice and preparation are crucial

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Summary

Being made redundant does not mean your home ownership plans are over. Mortgage lenders focus on where you are now — not just what happened in the past. If you’ve returned to stable employment, have manageable outgoings, and apply to the right lender, getting a mortgage after redundancy is often very achievable.

Understanding how lenders assess employment changes and taking the right steps before applying can make the difference between rejection and approval. With expert guidance, many borrowers move forward successfully after redundancy.

This guide provides general information only, personalised recommendations must come from a regulated mortgage advisor